Westlake Chemical Partners LP Announces Second Quarter 2018 Results

Increased quarterly cash distribution by 2.8% sequentially, or 12%
compared to the second quarter 2017 distribution, to $0.4088 per unit,
the 14th consecutive quarterly increase in distributions

Reset the target distribution tiers for the Incentive Distribution
Rights (“IDRs”) with the first target distribution threshold
increasing to $1.2938 per unit from $0.3163

Quarterly distribution coverage ratio of 1.21x

HOUSTON--(BUSINESS WIRE)--Aug. 2, 2018--
Westlake Chemical Partners LP (NYSE: WLKP) (the "Partnership") today
reported net income attributable to the Partnership of $12.8 million, or
$0.40 per limited partner unit, for the three months ended
June 30, 2018, an increase of $2.8 million compared to second quarter
2017 net income attributable to the Partnership of $10.0 million. The
increase in net income attributable to the Partnership was primarily due
to the Partnership's increased ownership interest in Westlake Chemical
OpCo LP ("OpCo") effective as of July 1, 2017 and increased production
at OpCo, partially offset by lower margins on OpCo’s third party sales
volumes when compared to the prior-year period. Cash flows from
operating activities in the second quarter of 2018 were $114.4 million,
which is comparable to second quarter 2017 cash flows from operating
activities of $113.2 million. For the three months ended June 30, 2018,
MLP distributable cash flow was $16.0 million, an increase of
$5.0 million compared to second quarter 2017 MLP distributable cash flow
of $11.0 million. The increase in MLP distributable cash flow as
compared to the prior-year period was primarily due to the Partnership's
increased ownership interest in OpCo, increased production and lower
maintenance capital expenditures at OpCo, and the elimination of IDR
payments to Westlake Chemical Corporation (“Westlake”) that resulted
from the July 2018 amendment of the Partnership’s target distribution
tiers. The second quarter of 2017 was negatively impacted by the
turnaround and 100 million pound expansion of OpCo’s Calvert City
facility, which began in March 2017 and was completed in April 2017.

Second quarter 2018 net income attributable to the Partnership of
$12.8 million, or $0.40 per limited partner unit, increased by $0.5
million from first quarter 2018 net income attributable to the
Partnership of $12.3 million. This increase in income attributable to
the Partnership was due to increased OpCo production, partially offset
by lower margins on OpCo’s third party sales volumes. Second quarter
2018 cash flows from operating activities of $114.4 million increased by
$8.2 million compared to first quarter 2018 cash flows from operating
activities of $106.2 million. The increase in cash flows from operating
activities was primarily due to increased production and increases in
cash flows resulting from changes in working capital. Second quarter
2018 MLP distributable cash flow of $16.0 million increased by
$1.5 million compared to first quarter 2018 MLP distributable cash flow
of $14.5 million due to higher production and lower maintenance capital
expenditures at OpCo, and the elimination of IDR payments to Westlake.

Net income attributable to the Partnership of $25.1 million, or $0.75
per limited partner unit, for the six months ended June 30, 2018
increased by $5.4 million compared to the first six months of 2017 net
income attributable to the Partnership of $19.7 million. The increase in
net income attributable to the Partnership as compared to the prior-year
period was due to the Partnership’s increased ownership interest in OpCo
and increased production at OpCo, partially offset by lower margins on
OpCo’s third party sales volumes. Cash flows from operating activities
in the first six months of 2018 was $220.6 million, a decrease of
$41.7 million compared to the first six months of 2017 cash flows from
operating activities of $262.3 million. This decrease was due to a
reduction in receivables from Westlake to OpCo that occurred in 2017 and
lower margins on third party volumes, partially offset by increased
production at OpCo and lower turnaround expenditures. For the six months
ended June 30, 2018, MLP distributable cash flow of $30.5 million
increased by $8.1 million compared to the first six months of 2017 MLP
distributable cash flow of $22.4 million. The increase in MLP
distributable cash flow as compared to the prior-year period was due to
the Partnership’s increased ownership in OpCo and higher production and
lower maintenance capital expenditures at OpCo, partially offset by
lower margins on OpCo’s third party sales volumes.

On September 29, 2017, the Partnership issued and sold 5,175,000 common
units representing limited partner interests in the Partnership for
$113.9 million. The Partnership used the net proceeds of the public
offering and approximately $118.6 million of borrowings under the
$600 million senior unsecured revolving credit agreement with a
subsidiary of Westlake to acquire an additional 5% interest in OpCo for
$229.2 million, effective as of July 1, 2017.

On July 27, 2018, the Board of Directors of Westlake Chemical Partners
GP LLC, the general partner of the Partnership, and Westlake, the
Partnership’s sponsor and holder of the IDRs, agreed to reset the
Partnership’s target distribution tiers pursuant to which the IDRs are
calculated with the first target quarterly distribution threshold
increasing from $0.3163 to $1.2938 per unit. This reset would allow the
Partnership to increase its distribution per unit in line with
historical growth rates for over 10 years before the next IDR payment
would occur.

On July 31, 2018, the Board of Directors of Westlake Chemical Partners
GP LLC announced a quarterly distribution for the second quarter of 2018
of $0.4088 per limited partner unit to be payable on August 24, 2018 to
unit holders of record as of August 10, 2018. The second quarter 2018
distribution increased 12% compared to the second quarter 2017
distribution and 2.8% compared to the first quarter 2018 distribution.
MLP distributable cash flow provided coverage of 1.21x the declared
distributions for the second quarter of 2018.

OpCo's Ethylene Sales Agreement with Westlake is designed to provide for
stable and predictable cash flows. The agreement provides that 95% of
OpCo's ethylene production is sold to Westlake for a cash margin of
$0.10 per pound, net of operating costs, maintenance capital
expenditures and reserves for future turnaround expenditures.

"We are pleased with the Partnership's performance for the second
quarter of 2018. We are benefiting from the investments made over the
past few years to grow our earnings and cash flows, including adding 350
million pounds of ethylene capacity and increasing our ownership
interest in OpCo in both 2015 and 2017," said Albert Chao, President and
Chief Executive Officer. “The recent resetting of the distribution
targets for the IDRs set the conditions for the Partnership to continue
to increase distributions to unitholders through all four levers of
growth available to us.”

The statements in this release and the related teleconference
relating to matters that are not historical facts, such as those with
respect to increasing distributions and the timing of the next IDR
payment are forward-looking statements. These forward-looking statements
are subject to significant risks and uncertainties. Actual results could
differ materially, based on factors including, but not limited to,
operating difficulties; the volume of ethylene that we are able to sell;
the price at which we are able to sell ethylene; changes in the price
and availability of feedstocks; changes in prevailing economic
conditions; actions of Westlake Chemical Corporation; actions of third
parties; inclement or hazardous weather conditions, including flooding,
and the physical impacts of climate change; environmental hazards;
changes in laws and regulations (or the interpretation thereof);
inability to acquire or maintain necessary permits; inability to obtain
necessary production equipment or replacement parts; technical
difficulties or failures; labor disputes; difficulty collecting
receivables; inability of our customers to take delivery; fires,
explosions or other industrial accidents; our ability to borrow funds
and access capital markets; and other risk factors. For more detailed
information about the factors that could cause actual results to differ
materially, please refer to the Partnership's Annual Report on Form 10-K
for the year ended December 31, 2017, which was filed with the SEC in
March 2018.

This release is intended to be a qualified notice under Treasury
Regulation Section 1.1446-4(b). Brokers and nominees should treat one
hundred percent (100.0%) of the Partnership's distributions to non-U.S.
investors as being attributable to income that is effectively connected
with a United States trade or business. Accordingly, the Partnership's
distributions to non-U.S. investors are subject to federal income tax
withholding at the highest applicable effective tax rate.

Use of Non-GAAP Financial Measures

This release makes reference to certain "non-GAAP" financial
measures, such as MLP distributable cash flow and EBITDA, as defined in
Regulation G of the U.S. Securities Exchange Act of 1934, as amended. We
report our financial results in accordance with U.S. generally accepted
accounting principles ("GAAP"), but believe that certain non-GAAP
financial measures, such as MLP distributable cash flow and EBITDA,
provide useful supplemental information to investors regarding the
underlying business trends and performance of our ongoing operations and
are useful for period-over-period comparisons of such operations. These
non-GAAP financial measures should be considered as a supplement to, and
not as a substitute for, or superior to, the financial measures prepared
in accordance with GAAP. A reconciliation of MLP distributable cash flow
and EBITDA to net income and net cash provided by operating activities
can be found in the financial schedules at the end of this release. We
define distributable cash flow as net income plus depreciation,
amortization and disposition of property, plant and equipment, less
contributions from turnaround reserves and maintenance capital
expenditures. We define MLP distributable cash flow as distributable
cash flow less distributable cash flow attributable to Westlake's
noncontrolling interest in OpCo and distributions attributable to the
incentive distribution rights holder. MLP distributable cash flow does
not reflect changes in working capital balances. We define EBITDA as net
income before interest expense, income taxes, depreciation and
amortization. Because MLP distributable cash flow and EBITDA may be
defined differently by other companies in our industry, our definitions
of MLP distributable cash flow and EBITDA may not be comparable to
similarly titled measures of other companies.

Westlake Chemical Partners LP

Westlake Chemical Partners is a limited partnership formed by Westlake
Chemical Corporation to operate, acquire and develop ethylene production
facilities and other qualified assets. Headquartered in Houston, the
Partnership owns an 18.3% interest in Westlake Chemical OpCo LP.
Westlake Chemical OpCo LP's assets consist of three ethylene production
facilities in Calvert City, Kentucky, and Lake Charles, Louisiana and an
ethylene pipeline. For more information about Westlake Chemical Partners
LP, please visit http://www.wlkpartners.com.

Westlake Chemical Partners LP Conference Call Information:

A conference call to discuss Westlake Chemical Partners' second quarter
2018 results will be held Thursday, August 2, 2018 at 12:00 PM Eastern
Time (11:00 AM Central Time). To access the conference call, dial (855)
765-5686 or (234) 386-2848 for international callers, approximately 10
minutes prior to the scheduled start time and reference passcode 8897985.

A replay of the conference call will be available beginning two hours
after its conclusion until 11:59 p.m. Eastern Time on August 9, 2018. To
hear a replay, dial (855) 859-2056 or (404) 537-3406 for international
callers. The replay passcode is 8897985.